If you need money for any specific need like marriage, business expansion, foreign education then a good way to raise money is to get a loan against your property. The only condition for that is that you need to own a valuable asset in the form of a self-occupied house or a commercial property. It is a secured multi-purpose loan with longer tenure and lesser rate of interest than a personal loan.
You can take a loan against property for any reason like getting your son or daughter married, expanding your business, taking a foreign vacation or sending your children to overseas for study.
The criterion for applying for a loan against property is that it should be a freehold and self-owned property, having a clear and marketable title. The loan is given as a certain percentage of the property's market value (around 40-60 per cent). The value of your property will be determined by the bank offering you the loan. Anyone can get a loan against property given the person is a minimum age of 21 years, employed or self-employed with a regular income and is owner of a property.
The exact amount of loan against property given to you depends on factors including your income, repayment capacity and your past credit history. It also depends on the number of dependents, assets, liabilities, stability/ continuity of your employment/ business and the co-applicant's income.
It is advisable to do proper research before going for a loan against property. Ask the people who have opted for it in the past for their views on what bank offers the best loan deal. Have a proper look at the terms and conditions of of all the banks and try to read the fine print.
It is also important to look at the length of the repayment term. Choosing a lengthy repayment term will mean each monthly repayment is lower and this might well look attractive when making your application. However, the longer you take to repay the loan the more interest you'll have to pay in total. It's not unusual to have to repay double the amount you've borrowed once the loan term gets into the region of decades rather than a few years.